Goodman delivers 15.7% profit lift as data centre pipeline scales to $19.7 billion
In its FY26 full year results presentation, released on 20 August 2026, Goodman Group reported operating profit of $2,675 million, up 15.7% on FY25, with operating earnings per security (OEPS) of 129.9 cents, a 10.1% increase.
Statutory profit reached $2.8 billion, up 67%, while the total portfolio grew to $89 billion. The results underscored the Group’s pivot toward essential digital infrastructure, with data centre developments now the dominant driver of a development book that expanded to $19.7 billion.
| Metric | FY25 | FY26 | Change | Note |
|---|---|---|---|---|
| Operating profit | $2,311.2M | $2,674.5M | +15.7% | Development-led |
| Operating EPS | 118.0c | 129.9c | +10.1% | |
| Statutory profit | $1,666.4M | $2,778.7M | +67% | Revaluation gains |
| NTA per security | $11.03 | $11.79 | +7% | Cap rate tightening |
| Total portfolio | $85.6B | $89.0B | +4% | Development and revaluation |
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What drove the FY26 result
Management outlined an earnings mix increasingly weighted toward development activity, reflecting the current build-out cycle. The breakdown across segments was as follows:
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Development earnings of $1,792.2 million, up 34%, driven by increased on-balance-sheet transactional activity, and the standout contributor to the result.
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Property investment income up 7% to $722.1 million, supported by capital investment and rental growth.
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Management earnings of $690.1 million, down 18%, primarily due to lower transaction and performance fees ($206M in FY26 versus $372M in FY25), partly offset by higher base fees.
The shift is clear: development has become the earnings engine, mirroring the acceleration of the data centre programme.
Focus on asset location
“High occupancy, cashflow growth and development activity have continued to support returns and performance fees,” the presentation noted, adding that enquiry for large-scale, strategically located facilities capable of supporting advanced automation and robotics remains strong across key global markets.
The data centre story, a 6.4 GW global power bank
The presentation positioned the data centre platform as the strategic centrepiece. Key figures disclosed include:
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A global power bank of 6.4 GW across 16 major global cities, with 3.6 GW secured and 2.8 GW in advanced stages of procurement.
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0.5 GW of metro data centre developments now in WIP, with data centres comprising 78% of total WIP, up from 57% in FY25.
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Over $15 billion of data centre projects in WIP at June 2026.
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A 20-year track record, with 0.8 GW delivered to date. Of this, 0.7 GW is stabilised (valued at $5.7 billion), 100% leased, with a 13.3-year weighted average lease term.
A landmark Tokyo lease
Management highlighted the TYO05 milestone, a 50 MW facility leased to a hyperscale customer for a 20-year lease term. The fully fitted facility, delivered with operations, represents the first phase of the 1,000 MW Tsukuba Tech Central campus, with staged completion over 2028 to 2029.
The Tsukuba Tech Central campus is backed by secured TEPCO grid power and exclusive dark fibre routes to Greater Tokyo’s main interconnection points, positioning it with the two scarcest inputs in metro data centre markets ahead of its phased 1,000 MW buildout.
Advanced negotiations were also disclosed at Los Angeles (LAX01), Hong Kong (HKG10) and Amsterdam (AMS01). Management framed the Tokyo lease as validation of the fully-fitted strategy and its capacity to generate long-duration recurring income.
Understanding the data centre opportunity
For investors newer to the sector, the Group’s presentation reinforced why data centres sit at the heart of the investment case.
A “power bank” refers to electricity capacity comprising both secured power and power in advanced stages of procurement, located in supply-constrained metro locations. In the AI era, power, rather than land alone, is often the scarce resource limiting new supply.
Goodman offers a range of deployment options, from powered shell to fully fitted facilities. The distinction matters:
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Powered shell: the building and power are delivered, with the customer fitting out and operating the facility.
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Fully fitted: Goodman delivers a complete, operational facility.
Approximately 90% of data centre projects in WIP are fully fitted. Metro and urban sites suit latency-sensitive cloud and AI inferencing workloads, which require proximity to end users. These sites are harder to replicate, supporting sustained demand. The thesis rests on Goodman combining scarce power, land, delivery capability and capital to build into structural digital infrastructure demand.
A fortress balance sheet and disciplined capital management
The presentation detailed a capital position designed to underpin the growth programme. Key figures include:
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$6.4 billion in cash and undrawn lines, comprising $4.1 billion in cash and $2.3 billion of available bank facilities.
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Headline gearing of 6.5% (4.3% at FY25) and 19.5% on a look-through basis, within the lower half of the 0–25% policy band.
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An Interest Cover Ratio of 25.4x (9.5x look-through).
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Investment grade credit ratings of BBB+ (S&P) and Baa1 (Moody’s).
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$3.2 billion of third-party capital raised across the Partnerships, with four new Partnerships established and Partnership AUM of $75.4 billion.
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81% of interest payments hedged, on average, over the next three years.
Notably, 71% of current WIP is being undertaken within Partnerships or for third parties. This capital-efficient model spreads risk while retaining management fees, combining balance sheet capital with third-party capital to support growth.
Outlook, FY27 guidance and the road ahead
Looking ahead, the Group outlined its forward direction and targets for the coming year.
FY27 targets
Operating EPS growth of 9%, with the target distribution maintained at 30.0 cents per security as retained earnings are deployed into ongoing activities.
Strategic priorities disclosed in the presentation include:
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New data centre starts expected in FY27, with production rate and WIP expected to increase.
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The Australian Data Centre Partnership expected to finalise in 1H FY27.
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Continued asset rotation, referencing the $1.5 billion sale of Moorabbin Airport and the separate $2.65 billion acquisition of selected Brickworks interests in industrial Partnerships.
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Industrial demand for automation and robotics-capable facilities expected to generate further development opportunities in FY27.
Management noted that hyperscale capex is accelerating, with demand likely to exceed supply through 2026 and 2027, and most enquiry on a fully fitted basis. With secured power, a funded development workbook, low gearing and a maintained distribution, the Group described itself as well positioned to build into structural AI and cloud demand as it enters FY27.
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